Restoring the land of opportunity and A fair go for owner operated business and farmers – For people that aspire to work for themselves. There has been a most destructive concentration of market power in the Australian food industry. Two supermarket chains control more than 90% of the market. The AC Nielson series in 2002 reported the market share of the big two at 76.7%.
The attached document from the Australian Bureau of Statistics (series 5368.0) shows that ten years ago Australian food exports were 400% higher than imports. They are now only 100% higher. This means Australia’s food surplus is reducing by 30% per year, within 3 ½ years we will be a net importer of food.
Ten years ago Australian food exports were 400–500 % higher than imports. They are now barely twice the size of imports. If live animals and processed grain were taken out of these figures, the picture would be far dire, we are already a net importer of fruit and vegetables, pork, and seafood.
“We will bust up the Coles/Woolworths duopoly.” Hon Bob Katter MP
‘Free market’ policies and a failure by Government to act in the best interests of Australia, have directly led to a local market place bereft of competition, dominated by only two major supermarket chains.
This dominance has now swollen to over 85%. By comparison, the largest chain in the United States, Wal-Mart, is restricted to only 20%. This concentrated market power has drastic effects on all levels of the economic chain. Other retailers are crushed, farm gate prices are squeezed down and with no competition, consumer prices are inflated, meaning higher grocery bills.
Something must be done to halt the erosion of our consumer markets.
Recognising this, The Australian Party has vowed to restore competition to the market place. In order to break this two chain oligopoly, the following measures must be implemented
To provide fair grocery prices, fair farm gate prices and opportunity for owner operators, a competitive marketplace must exist. This cannot take place when only two players control
nearly all of the retail dollar. Unlike the other bigger parties, The Australian Party is committed to returning to a market place where competition delivers a fair and level playing field.